Final answer:
Block grants are not made for a very specific purpose but are instead provided to state and local governments for more general use within a broad policy area, offering flexibility in how the funds are utilized.
Step-by-step explanation:
The statement that block grants are made for a very specific purpose is false. Block grants are actually known for offering a greater degree of flexibility compared to categorical grants. They provide broad financial resources to state and local governments, which can determine how to allocate the funds to a variety of purposes within a general policy area.
During President Ronald Reagan's tenure, the use of block grants became preferred as a way to enable states to better manage financial resources, a principle in line with the push for decentralization and state sovereignty in decision-making over resource allocation. However, it's important to note that over time the flexibility of block grants has been somewhat compromised by processes like creeping categorization, where new administrative requirements or restrictions, such as set-asides and cost ceilings, are imposed. The national government has historically favored categorical grants because they offer greater control over how money is spent. Nevertheless, states generally prefer block grants due to their fewer restrictions and mandates, which provide more leeway in responding to the specific needs of their communities.